Hummer may not be moving to China after all
It’s beginning to look like Hummer is not moving to China after all.
Weeks after it was reported that General Motors was on its way to selling the beleaguered car franchise to investors from the East, strong objections towards the impending sale may have killed all the talks between GM and the Sichuan Tengzhong Heavy Industrial Machinery Corp.
China’s planning agency was apparently behind the blocking of the sale, saying that purchasing the Hummer would go against China’s new energy-saving policies.
In addition to that, China’s National Development and Reform Commission also noted that while the Hummer remains one of the most popular SUV brands in the world, selling it off to a buyer that has neither the expertise nor experience to produce the Hummer would only hurt the franchise’s credibility in the long run.
You may recall the surprising news a while back that General Motors found a suitor for the Hummer from China, which caught a lot of people by surprise. And now, it may not come to fruition, after all.
We haven’t heard any response from General Motors yet, but with the strict laws in China regarding foreign purchases – they require regulatory approvals, by the way – it’s becoming more and more likely that GM should open the possibility of having to look for a different buyer for the Hummer franchise because as it stands, the Sichuan Tengzhong Heavy Industrial Machinery Corp may have been pulled out of purchasing the Hummer by its own government.
Source: Detroit News